What happens when you refinance a mortgage? James Green, General Manager at RateComparison, can tell you all about it.
In my many years of mortgage broking, I’ve never seen an easier way to save money than loan refinancing. If you’ve ever considered refinancing your home loan, now is the time to act before interest rates start climbing back up. Although most Aussie homeowners are motivated by lower interest rates, I could tell you a number of other reasons to switch lenders.
Whether your family is growing, your budget is tighter, or your needs are changing, your mortgage arrangement might not keep up. That’s why refinancing is so useful, especially when you use services like RateComparison to easily compare the options on the market.
Read on to discover why refinancing is such a smart move.
Improved lender benefits
Over time, you may have discovered that your lender charges an exorbitant annual fee or has crappy customer service, and you’d rather deal with a company that has your best interests at heart. Having a knowledgeable mortgage broker on your side means you’ll have all the benefits explained to you, person to person, so you can make an informed decision about your mortgage.
Adjust your loan term
Refinancing is an opportunity to either reduce or extend the life of your loan. Depending on your financial goals, you may prefer a shorter or longer loan term. Remember that lower monthly payments don’t always represent the best long-term value, so it’s best to consult a mortgage broker about your preferences.
Change loan types
Not all home loans are created equal. Choosing a fixed-term mortgage over a variable one can have a big impact on your overall costs. When comparing home loans, be sure to compare similar products. In my experience, a quick phone call with one of my customers can mean a lifetime of savings.
Access home equity
After a few years you might be ready to upgrade your kitchen or renovate the bathroom, and home equity can make these projects possible. Accessing home equity is often a great opportunity to make sure your loan is still working for you. A mortgage broker can be a great resource to help you re-evaluate how your mortgage suits your current situation.
Lower interest rates
We can’t ignore the most convincing reason to refinance, and that’s to secure a lower interest rate. If you haven’t refinanced in a few years, chances are good that a lower interest rate could be available to you. A few minutes on the phone with a mortgage specialist could lead to significant dollar savings, now and in the years to come.
General Manager at RateComparison
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